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JAMB Economics 2018 Question 34

Question 34

National Income

Given that Y = C + I, where C = 50 + 0.75Y and I = ₦ 45m, what is the equilibrium level of income?

  1. A.₦20m
  2. B.₦380m
  3. C.₦200m
  4. D.₦180m
Show the answer and explanation

Answer: B (₦380m)

Explanation

Y = 50 + 0.75Y + 45, so 0.25Y = 95 and Y = 95 ÷ 0.25 = ₦380m.